Al-Khafaji explains ANCP program structure and co-op conversion requirements
Al-Khafaji describes the collaboration between sponsor and HPD, the role of Restoring Communities HDFC as temporary owner during construction, and the requirements for co-op conversion including training attendance and purchase participation thresholds.
The purpose of this program is to gut renovate the tenant interim lease or till buildings and to enable the 36 existing households to become homeowners.
The structure of this program will be a collaboration between a sponsor, Lumley and Wolf, of whom we have Mike McCarthy today, partnering with HPD.
The sponsor will manage the building during construction and throughout the conversion process.
During construction, the nonprofit Restoring Communities HDFC will own the building to prevent any potential conflicts of interest with the sponsor.
Upon conversion, the building will be owned and managed by the residents of the buildings, including the existing residents and the new purchasers of the currently vacant units.
The requirements for the buildings to convert to co-ops are to have 80% of existing residents attend to at least eight co-op success trainings, which will be provided during the construction period.
80% of existing residents must also remain current on their rent payments.
And lastly, 80% of the existing residents must choose to purchase their units at co-op conversion.
Any buildings that do not convert will become rent-stabilized rental buildings post-rehab.
Next slide, please.